Talks to save EP Children’s Hospital continue

AUSTIN — The search for a deal to save El Paso Children’s Hospital will continue through the weekend, one of the officials involved said Friday.

Lawyers for the hospital and its chief creditor, University Medical Center of El Paso, are negotiating how to restructure the hospital’s debt and revamp its management in advance of a joint meeting at 2 p.m. Monday. That session will involve the UMC board and the El Paso County Commissioners, County Judge Veronica Escobar said.

If negotiations fail, lawyers for Children’s and UMC are due Tuesday afternoon in U.S. Bankruptcy Court in Austin for a hearing in which UMC will resume its effort to file a plan to restructure Children’s on its own.

That will be followed by a trial starting Oct. 22 during which the two sides will litigate Children’s claims that UMC has gouged it for services.

“The bankruptcy is still moving and the litigation is still moving,” Escobar said.

UMC says Children’s owes it more than $106 million. The hospital has been projected to run out of money late this year or in January.

“The good news is that the lawyers have been in constant communication,” Escobar said. “The tenor and the spirit of collaboration have been very positive.”

Escobar said she couldn’t comment on the details of the negotiations other than to say, “We would commit to their mission and vision for the future.”

But earlier this week, she said she was no longer interested in giving Children’s Hospital more time to search for a partner other than UMC to infuse cash and help put the hospital’s financial house in order.

“Last year, UMC did everything possible to offer cheaper rent and reduced debt to make Children’s attractive to a strategic partner, but it didn’t work out,” Escobar said.

Children’s did not respond Friday to a request for comment.

UMC spokesman Ryan Mielke said his only comment was, “We’re in preparations for our discussion with commissioners on Monday.”

Marty Schladen may be reached at 512-479-6606; mschladen@elpasotimes.com; @martyschladen on Twitter.